Lower interest rates key to affordable housing

Cityscape intelligence finds India’s real estate developers focusing on mid-income housing amid calls for liquidity & finance at lower rates

Research conducted by Cityscape intelligence ahead of next month’s Cityscape India exhibition and conference, has revealed that many of India’s top real estate developers are beginning to change their business strategy away from luxury or high-end projects towards mid-income residential developments.

However, although many developers can self-liquidate to a certain degree through attractive incentive schemes, they are lobbying the Government and the financial sector to inject much needed capital into the market and lower interest rates to benefit the developers, investors and end users.

“It has been said many times before the demand for low cost affordable housing in India is undeniable. However prices need to be realistic to begin with and mortgages affordable as well. Sentiment could be the only stumbling block, which if removed could energise India’s entire real estate sector,” said Graham Wood, Exhibition Director, Cityscape India.

To underscore the importance of this property segment, the Honourable Minister for Housing and Urban Poverty Alleviation, Kumari Selja, will address domestic and international delegates during the opening of Cityscape India which is due to take place at the Bombay Exhibition Centre on 8-10 December 2008.

Her speech entitled ‘Affordable Housing For All In India’ will outline the initiatives to develop residential property, not only for India’s burgeoning middle class, which is now estimated at 325 million people, but also for India’s lower class, which still represents approximately 70% of India’s 1.2 billion population.

“This could be news that some of India’s investors and developers have been waiting for. One thing is certain, the real estate industry will be given an insight into the Government’s mindset on low cost housing initiatives and equally important a platform to present their own challenges direct to the minister,” added Wood.

Cityscape India is an annual international networking exhibition and conference focusing on commercial architecture, property investment and development and attended by the most significant investors, developers, architects and consultants.

The event was launched in 2007 to provide the country's real estate sector, with a networking platform where domestic developers can source international investment contacts. It is also a platform where international developers can meet Indian investors. This year, Cityscape India is set to welcome more than 8,000 participants from around the world.

Another highlight this year will be two parallel conferences, ‘Infrastructure Finance & Investment’ and ’Retail City Summit Day’. Notable participants include the Trump Organisation of the United States, Al Futtaim Group Real Estate, UAE, Merrill Lynch, India and Ansal API Group, India.

Donald Trump Junior, Executive Vice President of Development and Acquisitions for the Trump Organisation, spoke at last year's Cityscape India, and is set to return this year sending a clear message of intent to India’s property market.

The Cityscape India 2008 Real Estate Awards will also honour leading real estate professionals and companies for their outstanding contribution to the industry.

Platinum sponsors of Cityscape India 2008 are Limitless a Dubai World company and Soundlines, a diversified company with offices in UAE, Saudi Arabia, Qatar, India, Nepal and Bangladesh. Leading real estate and investment company Tanmiyat are the Gold sponsors.

India gets realty check from Gulf investors

3rd Nov 2008 - Gulf property majors shun India’s
economic indicators and dig-in for the long haul - India’s real estate market estimated to grow to $60 billion by 2010

Despite the current economic downturn, India’s real estate is said to be worth about $16 billion and is estimated to post annual growth rate of 30 per cent to reach $60 billion by 2010 according to research outfit ‘Çityscape Intelligence’.

As a consequence a large contingent of regional real estate investors and developers are poised to descend on Cityscape India to further their long term ambitions in the sub-continent.

Graham Wood, Exhibition Director for Cityscape India said, “The internal demand for commercial and residential real estate in India is undeniable. The investment climate may be difficult but developers will benefit from lower land prices, lower material and labour costs. Providing that the finance is in place, many developments may be approaching completion after the downturn has bottomed-out.”

Dubai-based Limitless is confident about the long term prospects of India’s real estate sector. "India is currently facing a shortage of some 21 million homes, and more than 300 million people are expected to migrate to urban areas over the next 20 years. At Cityscape India, we will showcase 11 global projects including Bidadi -- our proposed 4,000 hectare mixed-use development near Bangalore -- which will house around 750,000 people," said Saeed Ahmed Saeed, CEO of Limitless.

In addition Mohamed Binbrek, Group Chief Executive Officer of Dubai Properties recently confirmed that the company hopes to expand its development projects into India. He went to say that whether the scheme would be residential, commercial or mixed-use, the project would be funded by the firm itself.

Dubai-based real estate developer Majid Al Futtaim (MAL) has announced it is investigating India ‘a market to be in’ as a possible region for investment and development. Younis Al Mulla, MAL business development officer, said that the firm was looking to enter a joint venture with a local firm to help it build a mixture of residential and commercial real estate in the country.

The investment arm of Ras al-Khaimah also plans a $5 billion business centre at Hyderabad. Ras Al Khaimah Investment Authority (RAKIA), which manages funds of the emirate, part of the United Arab Emirates, said recently it had signed an initial agreement with Andra Pradesh Industrial Infrastructure Corp to set up Hyderabad Economic City, which will offer financial and healthcare services. Indeed demand for affordable housing is an issue that Kumari Selja Minister of State (Independent Charge) for Ministry of Housing and Urban Poverty Alleviation will address during the opening of the Cityscape India Conference.

“With 70% of India’s 1.2 billion people categorized as lower class, the demand for affordable housing is immense and potentially the long term returns for investors and developers is colossal,” said Wood.

This year’s Cityscape India, which is due to take place at the Bombay Exhibition Centre on 8-10 December 2008 will host major real estate players such as RAK properties, Dubai Investments, Tanmiyat, Gulf Finance House and Limitless.

In total Cityscape India is set to welcome more than 7,000 participants from around the world. "In addition, leveraging its relationships in the global investment market place, Cityscape will reach out to over 350,000 senior decision makers seeking to invest in one of the world’s fastest growing economies," added Wood.

Another highlight this year will be two parallel conferences, ‘Infrastructure Finance & Investment’ and ’Retail City Summit Day’. Notable participants include the Trump Organisation of the United States, Al Futtaim Group Real Estate, UAE, Merrill Lynch, India and Ansal API Group, India.

Platinum sponsors of Cityscape India 2008 are Limitless a Dubai World company and Soundlines, a diversified company with offices in UAE, Saudi Arabia, Qatar, India, Nepal and Bangladesh. Leading real estate and investment company Tanmiyat are the Gold sponsors.

Honourable Kumari Selja to open Cityscape India

Minister of State (Independent Charge) for Ministry

of Housing and Urban Poverty Alleviation to outline affordable housing initiative to international investors & developers at Mumbai real estate showcase

The honourable Minister for Housing and Urban Poverty Alleviation, Kumari Selja, will be cutting the ribbon at this year’s Cityscape India, which is due to take place at the Bombay Exhibition Centre on 8-10 December 2008.

After the official opening the honourable Minister will address local, regional and international delegates during the opening of the Cityscape India Conference. Her speech entitled ‘Affordable Housing For All In India’ will outline the initiatives to develop residential property, not only for India’s burgeoning middle class, which is now estimated at 325 million people, but also for India’s lower class, which still represents approximately 70% of India’s 1.2 billion population.

“28% of India’s population now lives in conurbations and that figure is growing rapidly. The demand for affordable housing is immense and potentially the long term returns for investors and developers is colossal,“ said Graham Wood, Exhibition Director.

Cityscape India is an annual international networking exhibition and conference focusing on commercial architecture, property investment and development and attended by the most significant investors, developers, architects and consultants.

Cityscape India 2007 officially became the largest business-to-business real estate event in India attracting over 5,000 participants from 38 countries celebrating the best in real estate, architecture, urban planning and design. The event was launched in 2007 to provide the country's real estate sector, now valued at over $15 billion, a networking platform where domestic developers can source international investment contacts. It is also a platform where international developers can meet Indian investors.

This year, Cityscape India is set to welcome more than 8,000 participants from around the world. "In addition, leveraging its relationships in the global investment market place, Cityscape will reach out to over 250,000 senior decision makers seeking to invest in one of the world’s fastest growing economies," said Graham Wood, Exhibition Director.

New this year two parallel conferences entitled ‘International Real Estate Investment and Development’ and ‘Infrastructure Finance & Investment’ will take place alongside the exhibition. Recognised as India's leading networking conference, participants include, the Trump Organisation of the United States, Reliance of India and Nakheel of the United Arab Emirates.

Donald Trump Junior, Executive Vice President of Development and Acquisitions for the Trump Organisation, spoke at last year's Cityscape India, and is looking forward to returning. He added: "Cityscape India has certainly come in at the right time to provide a quality business-to-business networking platform."

There will also be an Infrastructure Conference addressing one of the most important topics in India with respected names presenting their experiences and knowledge of effectively overcoming challenges to raise equity and build public-private partnerships.

The Cityscape India 2008 Real Estate Awards will also honour leading real estate professionals and companies for their outstanding contribution to the industry. The award categories include: Most Innovative Finance; Best Real Estate Marketing Campaign Award; Best Corporate Social Responsibility Project; Best Urban Design and Master Planning; Best Developer – Retail Project; Best Developer – Commercial/Office Project; Best Developer – Hospitality Project; Best Developer – Residential Project Award; Best Developer – Mixed Use Project.

Platinum sponsors of Cityscape India 2008 are Limitless and Soundlines. Limitless, a Dubai World company, currently has nine projects – worth over $100 billion – in India, Saudi Arabia, Malaysia, Vietnam, Jordan, Russia and the United Arab Emirates. Soundlines has diversified into real estate, construction, HR consultancy, hospitality, travel and tourism and healthcare with offices in UAE, Saudi Arabia, Qatar, India, Nepal and Bangladesh.

Gold sponsors are Tanmiyat Group, one of the Middle East’s leading real estate and investment companies, with joint ventures and projects across the region, including Saudi Arabia, the UAE, and Jordan, with investment plans for India, China and Tunisia.